Statutory Sick Pay: A Guide for UK Employers and Employees
Did you know that in the UK, over 95% of full-time employees are entitled to Statutory Sick Pay (SSP) when they are unable to work due to illness? Whether you’re an employer navigating the complexities of SSP or an employee seeking to understand your sick pay entitlement, this comprehensive guide has got you covered. From the rules and rates to the qualifying conditions and claim process, we will provide you with all the information you need to ensure you understand your rights and obligations when it comes to SSP.
Key Takeaways:
- Statutory Sick Pay (SSP) is a government-mandated payment that provides sick pay to eligible employees in the UK.
- Employees are entitled to SSP if they meet certain criteria, including earning at least £120 per week and being off sick for at least 4 days in a row.
- SSP rates currently stand at £109.40 per week for up to 28 weeks.
- Employers are responsible for paying SSP to eligible employees and must include it in their regular payslip.
- When an employee’s SSP entitlement ends, they may be eligible for other forms of support such as Employment and Support Allowance.
What is Statutory Sick Pay?
Statutory Sick Pay (SSP) is a government-mandated payment that certain employees are entitled to when they are too sick to work. It is the minimum legal requirement for employers to provide sick pay to their employees. While employers can have their own company sick leave policy, it must meet the minimum SSP requirements and be included in employment contracts.
When an employee falls ill and is unable to work, they may be eligible for Statutory Sick Pay. This is a form of financial support provided by the government to employees who meet certain criteria. SSP ensures that employees are not left without any income during absence due to illness, and also serves as an incentive for individuals to remain home when they are unwell, reducing the spread of contagious diseases in the workplace.
Statutory Sick Pay is a fundamental right for employees in the UK. It provides a safety net for individuals who are unable to work due to illness, ensuring they receive some income during their sick leave.
Government-Mandated Payment
SSP is a government-mandated payment, meaning that employers are legally required to provide it to eligible employees. The government sets out the rules and regulations regarding SSP, including the rate of payment and the qualifying conditions. It is important for both employers and employees to understand these regulations and their rights and responsibilities under the law.
Entitlement to SSP
To be entitled to SSP, employees must meet certain criteria. They must be classified as an employee and have been off work due to illness for at least four consecutive days, including non-working days. Additionally, employees must earn at least £120 per week before tax. These conditions help ensure that SSP is provided to those who genuinely need it and discourage misuse or fraudulent claims.
Company Sick Leave Policy
While employers must provide SSP to eligible employees, they can also have their own sick leave policies in addition to the statutory requirements. However, these policies must meet or exceed the minimum SSP entitlements and be clearly communicated to employees. It is essential for employers to familiarize themselves with the SSP rules and incorporate them into their company policies to ensure compliance with the law.
Summary
In summary, Statutory Sick Pay is a government-mandated payment that provides financial support to employees who are too sick to work. It is a legal requirement for employers to provide SSP to eligible employees, and employers can also have their own sick leave policies as long as they meet the minimum SSP requirements. Understanding SSP and its regulations is crucial for both employers and employees to ensure compliance and fair treatment in the workplace.
How Much Is Statutory Sick Pay in the UK?
Statutory Sick Pay (SSP) is an essential benefit that provides financial support to employees who are unable to work due to illness. Understanding the rates and entitlements of SSP is crucial for both employers and employees.
The current weekly rate for SSP in the UK is £109.40. This amount is paid for up to 28 weeks, provided the employee meets the eligibility criteria. It’s important to note that SSP is not paid for the first three days of absence unless the employee has previously received SSP within the last eight weeks.
When calculating SSP, it is based on the employee’s qualifying days, which are the days they would have typically worked. Employers should ensure they pay their employees the appropriate amount of SSP based on their regular working schedule. To determine the exact amount of SSP an employee is entitled to, employers can use the SSP calculator, which allows for accurate and transparent calculations.
Statutory Sick Pay Rates
| Period | Weekly Rate |
|---|---|
| Current Rate (up to 28 weeks) | £109.40 |
| Previous Rate | £95.85 |
It is important for employers to keep track of SSP rates, as they may change over time. Staying informed about any updates ensures compliance with the law and fair treatment of employees. Additionally, employers should review the government guidelines regularly to ensure they are up to date with the latest SSP rates and regulations.
Understanding the rates and entitlements of Statutory Sick Pay is essential for both employers and employees. By staying informed and correctly calculating SSP, employers can fulfill their legal obligations and provide support to their employees during times of illness.
Who Pays For Statutory Sick Pay?
According to the Statutory Sick Pay (General) Regulations 1982, employers are responsible for paying Statutory Sick Pay (SSP) to eligible employees. It is important for employers to understand their role in providing for their employees’ sick leave.
When an employee is unable to work due to illness or injury, it is the employer’s responsibility to ensure they receive SSP. This payment should be included in the regular payslip of employees, along with any applicable tax and national insurance deductions.
Employers play a crucial role in supporting their employees’ well-being and facilitating a smooth sick pay process. By fulfilling their obligation to pay SSP, employers demonstrate their commitment to their workforce’s health and financial security.
“According to the Statutory Sick Pay (General) Regulations 1982, employers are responsible for paying SSP to eligible employees.”
There are, however, some exceptions to the employer’s responsibility to provide SSP. Employees who have already exceeded their 28-week entitlement or are receiving other types of statutory payments may not be eligible for SSP from their employer.
It is important for employers to understand the specific rules and regulations regarding SSP to ensure compliance and fairness in the workplace. By familiarizing themselves with their responsibilities, employers can create a supportive environment for their employees during their illness or injury.
| Responsibilities | Employer’s Role |
|---|---|
| Payment of SSP | Ensuring timely and accurate payment of SSP to eligible employees. |
| Tax and National Insurance Deductions | Deducting the necessary tax and national insurance contributions from SSP payments. |
| Exception to Paying SSP | Acknowledging exemptions for employees who have exceeded their entitlement or are receiving other types of statutory payments. |
Who Can Claim Statutory Sick Pay?
To be eligible for Statutory Sick Pay (SSP), employees must meet certain criteria. Here are the key factors that determine eligibility:
- Part-time and fixed-term employees: Both part-time and fixed-term employees are eligible to claim SSP if they meet the other criteria.
- Minimum earnings requirement: Employees must earn at least £120 per week before tax to be eligible for SSP. This minimum earnings threshold ensures that the individual has a significant employment relationship.
- Self-certification of illness: Employees can self-certify their illness for up to 7 days. This means that for absences of up to a week, employees can declare their sickness without the need for a doctor’s note.
However, for absences longer than a week, a doctor’s sick note is required as evidence of the employee’s illness. This ensures that the employee’s prolonged absence is genuine and warrants continued SSP payments.
It’s important to note that meeting these eligibility criteria does not guarantee automatic approval for SSP. Employers have the right to verify and assess eligibility based on the evidence provided by the employee.
When Does Statutory Sick Pay Kick In?
Statutory Sick Pay (SSP) becomes applicable on the fourth day of an employee’s absence, which is known as the first qualifying day. The initial three days of sick leave are considered waiting days and do not meet the criteria for SSP unless the employee has previously received SSP within the last eight weeks. However, if the absence is directly linked to COVID-19, SSP can be availed from the first day of absence.
Image of a person wearing a face mask, symbolizing COVID-19 related absences.
Qualifying Days, Waiting Days, and Sick Leave Duration
Qualifying days are the days an employee would typically work during their workweek and are utilized to determine the amount of SSP an employee is entitled to receive. The first three days of sick leave are waiting days and are not eligible for SSP, unless the employee has received SSP within the past eight weeks.
In general, SSP is available for a maximum of 28 weeks. During this time, employees will receive SSP for the qualifying days they are off work due to illness. It’s important to note that self-isolation due to COVID-19 related absences falls under the exceptions and allows employees to receive SSP from the first day of absence.
Comparison of Qualifying Days and Waiting Days
| Days | Qualifying Days | Waiting Days |
|---|---|---|
| Day 1 | Qualifying Day | Waiting Day |
| Day 2 | Qualifying Day | Waiting Day |
| Day 3 | Qualifying Day | Waiting Day |
| Day 4 | First Qualifying Day (SSP begins) |
Waiting Day |
| Day 5 | Qualifying Day | |
| Day 6 | Qualifying Day | |
| Day 7 | Qualifying Day |
Example: SSP Calculation
Let’s consider an employee who is absent due to illness for a period of two weeks, consisting of seven working days. The first three days are waiting days, and only the following four days qualify for SSP:
- Day 1: Waiting Day
- Day 2: Waiting Day
- Day 3: Waiting Day
- Day 4: First Qualifying Day (SSP begins)
- Day 5: Qualifying Day
- Day 6: Qualifying Day
- Day 7: Qualifying Day
In this case, the employee would qualify for SSP for the four qualifying days, while the waiting days would not be eligible for SSP.
It is crucial for both employers and employees to understand the distinction between qualifying days and waiting days to ensure accurate payment of SSP.
How Much Does SSP Cost An Employer?
As employers, we have an obligation to provide Statutory Sick Pay (SSP) to eligible employees. It’s important to understand the cost implications of SSP and our responsibilities in terms of tax and national insurance contributions.
Currently, the minimum amount of SSP is £96.35 per week for up to 28 weeks. This is the baseline payment that employers are required to make to employees who meet the eligibility criteria.
To ensure compliance, we must include SSP payments in the regular payslip of our employees. It’s essential to accurately calculate and allocate the appropriate amount of SSP based on the employee’s sick leave duration.
Additionally, as part of our obligation, we are responsible for deducting the necessary tax and national insurance contributions from the SSP payments made to employees. This ensures that the correct deductions are made and submitted to the relevant authorities.
It’s worth noting that the Percentage Threshold Scheme, which previously allowed employers to recover some of the SSP costs, has been discontinued. As a result, we must budget and account for the full cost of SSP payments within our financial planning.
By fulfilling our obligations and accurately managing the cost of SSP, we not only ensure compliance with the law but also support our employees during times of illness and promote a healthy and supportive work environment.
Key Takeaways
- Employers are obligated to pay Statutory Sick Pay (SSP) to eligible employees.
- The minimum amount of SSP is £96.35 per week, up to a maximum of 28 weeks.
- SSP payments should be included in the regular payslip of employees.
- Necessary tax and national insurance contributions must be deducted from SSP payments.
- The Percentage Threshold Scheme for recovering SSP costs has been discontinued.
What Happens When Statutory Sick Pay Ends?
When an employee’s SSP entitlement comes to an end, it’s important to consider the available options and ensure effective communication and record-keeping.
One option for employees whose SSP entitlement has ended is to apply for Employment and Support Allowance or Universal Credit. These welfare benefits provide financial support to individuals who are unable to work due to illness or disability. To facilitate the application process, employers must provide the necessary SSP1 form to their employees.
Open communication between employers and employees is crucial during this transitional period. Employers should maintain regular dialogue with their employees regarding their sickness and the estimated date of their return to work. This helps to ensure that both parties are informed and prepared.
Accurate record-keeping is vital for disputes or verification purposes. Employers should maintain detailed records of their employees’ sickness absences, ensuring the documentation is comprehensive and up to date. This will help in addressing any discrepancies or inquiries that may arise in the future.
| Key Points | Action Steps |
|---|---|
| Inform Employees | Communicate the end of SSP entitlement and discuss available options. |
| Provide SSP1 Form | Supply employees with the necessary form to apply for Employment and Support Allowance or Universal Credit. |
| Maintain Communication | Keep an open line of communication with employees regarding their sickness and return to work. |
| Record-Keeping | Maintain accurate records of sickness absences for future reference. |
Conclusion
In conclusion, this comprehensive guide has provided a clear and informative overview of Statutory Sick Pay (SSP) in the UK. We have covered various aspects, including entitlement, rates, eligibility criteria, and the end of SSP. It is essential for both employers and employees to have a solid understanding of SSP rules to ensure compliance and protect their rights and obligations.
Understanding SSP is crucial because it ensures that employees receive the financial support they are entitled to when they are too ill to work. Employers, on the other hand, need to grasp the rules and regulations surrounding SSP to fulfill their responsibilities and avoid potential legal issues. By staying informed and up-to-date with SSP guidelines, employers can effectively manage their sick leave policies and support their workforce.
To further assist in navigating the complexities of SSP, there are various resources available. The SSP calculator is a valuable tool that helps employers calculate the correct amount of SSP to be paid. Additionally, the government provides guidelines and information on SSP, which serve as reliable sources for employers and employees to ensure they have the most accurate and up-to-date information on SSP rules and entitlements.
FAQ
What is Statutory Sick Pay?
Statutory Sick Pay (SSP) is a government-mandated payment that certain employees are entitled to when they are too sick to work. It is the minimum legal requirement for employers to provide sick pay to their employees.
How Much Is Statutory Sick Pay in the UK?
The weekly rate for Statutory Sick Pay in the UK is £109.40 for up to 28 weeks. Employees are paid SSP for the days they would have normally worked, known as qualifying days.
Who Pays For Statutory Sick Pay?
According to the Statutory Sick Pay (General) Regulations 1982, employers are responsible for paying SSP to eligible employees. SSP payments should be included in the regular payslip of employees, with the necessary tax and national insurance deductions made.
Who Can Claim Statutory Sick Pay?
To be eligible for Statutory Sick Pay, employees must meet certain criteria. This includes being a part-time or fixed-term employee, earning at least £120 per week before tax, and having been off sick for at least 4 days in a row (including non-working days).
When Does Statutory Sick Pay Kick In?
Statutory Sick Pay kicks in on the fourth day of an employee’s absence, known as the first qualifying day. The first 3 days of sick leave are considered waiting days and do not qualify for SSP unless the employee has previously received SSP within the last 8 weeks. However, if the absence is directly related to COVID-19, SSP can be paid from the first day of absence.
How Much Does SSP Cost An Employer?
The minimum amount of SSP is £96.35 per week, up to 28 weeks. Employers must include SSP payments in the regular payslip of employees and deduct the necessary tax and national insurance contributions. Previously, employers could recover some SSP costs through the Percentage Threshold Scheme, but this scheme has been discontinued.
What Happens When Statutory Sick Pay Ends?
When an employee’s SSP entitlement ends, there are several options to consider. Employees may be eligible to apply for Employment and Support Allowance or Universal Credit, and employers must provide the necessary SSP1 form for this purpose. It’s important for employers to maintain open lines of communication with their employees regarding sickness and estimated return to work. Accurate record-keeping is also essential for disputes or verification purposes.
